Pottstown mulls request to extend business tax break

POTTSTOWN — A request to extend tax breaks for a Keystone Boulevard property that may soon be home to a new business met with a cool reception from the Pottstown School Board.

Steve Bamford, the executive director of Pottstown Area Industrial Development Inc., brought the proposal to the board on behalf of Heritage Coach Co. which is under agreement to buy the 10-acre former 84 Lumber truss assembly plant just east of the West Pottsgrove Township line.

The company provides limousines and hearses and wants to move its business into the site, bringing six or seven jobs, but wants the Keystone Opportunity Zone provisions extended to cut down its tax bill, Bamford said.

“We have a limited set of tools to attract business to Pottstown and this is one of the few tools we have,” Bamford told the school board Thursday while making the request for the seven year extension.

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But the school board is not so sure, given that the history of success with the program is limited.

“We did this one before and only one company took advantage of it and they’re not even here anymore,” said school board President Judyth Zahora.

“We would like to expect that at some point in our lifetime this property goes back on the tax roles,” she added.

“We truly want to see Pottstown succeed, but did didn’t get anything but 84 Lumber and none of the jobs that we have hopes to generate,” said Zahora, so for us it was just an expense.

Bamford said the tax revenue from the site that the county, school district and borough would be forfeiting comes out to about $39,000 a year.

Keystone Opportunity Zones were set up under the Rendell administration and were designed to attract businesses by forgiving certain state and local taxes, not the least of which were local property taxes.

However, the zones would not be established without the consent of the three local taxing authorities, the borough, the county and the school district.

The entire length of Keystone Boulevard was set up as a Keystone Opportunity Zone but it only attracted 84 Lumber.

A similar zone was also set up at the former Mrs. Smith’s Pies site.

Zahora asked if it would be possible to extend the existing zone for just the one parcel and not for the entire length of the road.

Bamford replied that is possible, but given that the deadline for extending the KOZs is 90 days prior to Dec. 31, 2013, it might be “more efficient” to do all the parcels at the same time.

School board member Polly Weand suggested that given that borough council must also make a decision on this matter, that it added to the joint meeting between the school board and borough council scheduled for Feb. 26.

Bamford said he made a similar presentation to borough council’s finance committee.

About the Author

Evan Brandt has worked for The Mercury since November 1997. His beat includes Pottstown, the surrounding townships and the Pottstown and Pottsgrove school districts, as well as other varied general topics like politics, the environment and education. Reach the author at ebrandt@pottsmerc.com
or follow Evan on Twitter: @PottstownNews.